Developed in response to feedback from advisers, retiree clients, and research from Grattan Institute and the Retirement Income Review, Generation Life has launched the next generation of its investment-linked lifetime annuity offering.
LifeIncome Flex would allow advised clients to increase their starting income when they enter retirement, expand income as their investment grow over time, and lower income in their later years when income requirements change.
“Our goal at Generation Life is to empower Australians to live the retirement lifestyle they desire and deserve. Retirement is a deeply personal and emotional time and we understand that Australians need investment options that give them flexibility and versatility, reflecting their retirement priorities and goals,” said Patrick Clarke, general manager retirement solutions.
“As the most flexible lifetime-linked annuity in the Australian market, LifeIncome Flex gives financial advisers the ability to help Aussies increase their retirement income in the early years so they can live life to the fullest throughout their retirement.”
According to data, Australians spent far less in retirement once they hit 80 but were excessively frugal in their early retirement years due to concerns that they would run out of money and a lack of awareness around the financial products to assist them with this.
Additional product enhancements to LifeIncome were:
- The ability to include a loved one other than a spouse as the reversionary beneficiary when LifeIncome is commenced with non-superannuation money
- Allowing couples to increase their starting income through LifeIncome Flex and lower income upon the passing of the client or their partner
- The choice to receive fortnightly payments either at the same time as their Centrelink age pension payments or the alternate fortnight
Moreover, a new dollar-cost averaging facility as part of Generation Life’s LifeIncome offering would assist when investment markets experience volatile periods by allowing clients to receive a weighted average price for their investment.
Generation Life is a finalist in Super Review sister brand Money Management’s annual Fund Manager of the Year Awards in the category of Innovation Award of the Year for its retirement products.
Speaking to Money Management, the firm said it is key to listen to the needs of their financial adviser clients when developing new products and this would remain a priority of the business.
“One of Generation Life’s core values is to always listen to financial advisers, client concerns and priorities, and then develop our products in response. Our investment products help advisers and their clients to build wealth — and leave legacies — with confidence,” it said.
“With new superannuation caps on the horizon, we’ve been working closely with our adviser network to ensure that clients’ retirement savings are optimised. Our new generation of investment bonds offer a stable and tax-efficient approach to complement superannuation and we are proud to educate audiences further with our Tax Optimised Investment Series to reduce tax and increase investor returns.”
